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March 25, 2005
Dealer Pricing Case Up for Review
Case may impact manufacturers’ wholesale pricing models
By Thomas P. Gale
The U.S. Supreme Court earlier this month agreed to review (a federal appeals court decision that pushes the boundaries of the Robinson-Patman Act, the federal price discrimination law. The case is important to any manufacturer that distributes products through independent resellers, and in turn to those distributors. If the appeals court decision is allowed to stand, it could effectively force manufacturers to end certain discounting policies, particularly in competitive bid situations.
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